The top rate last week at this time was a similar 5.51%. If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 5.51%. The average APY, or annual percentage yield, on a one-year CD is now 1.85%, the same as a week ago. One week ago, the best rate was the same. If you discover a one-year CD with a rate in that neighborhood, you’ve found a good deal. The highest interest rate currently being offered on a 12-month CD-one of the most popular CD terms-is 5.70%. That’s the interest you earn not only on your deposit (or principal) but also on the interest in the account. The current average APY for a six-month CD is 1.62%, steady with last week at this time.ĪPY provides a more accurate view of the annual interest you’ll earn with a CD because it takes into account compound interest. If you’d prefer a CD with a shorter term than one year, today’s best rate on a six-month CD is 5.59%.

Last week, three-month CDs were earning 1.20% on average. The current average rate on a three-month CD sits at 1.20%, but the highest rate is 5.83%. Current 3-Month CD Ratesįor short-term savings goals, three-month CDs might make sense. Therefore, it’s crucial to familiarize yourself with the CD issuer’s penalties before you open your account. For instance, it’s not uncommon to lose a full year’s worth of interest if you transfer funds out of a five-year CD account before the term is over. Generally, CDs with longer terms carry more severe withdrawal penalties than short-term CDs. But again, long-term CDs are only an option if you’re willing to stash away some cash you won’t be able to touch for years. If you’re interested in accruing the maximum amount of interest possible, consider long-term CDs, which historically have the highest APYs. For instance, you may forfeit six months’ worth of interest if you withdraw money from a one-year CD before 12 months are up. If you withdraw money from your CD before it “matures” (reaches the end of its term), you’ll likely get hit with steep penalties in the form of reduced interest. That term could range from a few weeks to several years, depending on the CD you choose.

The other major difference is that you’ll typically only earn interest on a CD account if you refrain from withdrawing funds during the term. Data accurate as of November 29, 2023.Ī CD is similar to a savings account, but the interest rate is fixed-not variable. Rates are based on a $25,000 minimum deposit.

First united bank cd rates